Off The News: Rise and fall of tax collections

It’s amazing how, in the space of a few months, the sunny fiscal outlook for a state with a budgetary surplus has dimmed. April tax collections dipped, partly because the home sales decline affected income tax payments, and the state Council on Revenues now projects a 1% revenue drop for the fiscal year ending June 30.

Council members expect a national recession but only a modest slowdown for Hawaii’s recovery. Still, recessions tend to put a damper on tourism. The governor will have to weigh all of this in spending decisions now.